Do divestment rates of foreign and domestic acquisitions differ?

Abstract

This thesis investigates whether there is a difference in the divestment rates of cross-border and domestic acquisitions of Norwegian subsidiaries acquired in 2004. The sample consisted of 101 acquisitions traced over 10 years as well as company data collected in 2004, 2007, 2010 and 2014. We used chi square (χ2) testing, t-test hypothesis testing and Cox survival analysis as methods of analyzing our data. No difference in the divestment rates between the two groups was found. Moreover, we found size of the parent and host country experience to be factors that could moderate the difference between the two groups measured, while integration of the target into the parent seemed to have a positive influence on subsidiary survival.